2022 Q3 Form 10-Q Financial Statement

#000149315222021562 Filed on August 08, 2022

View on sec.gov

Income Statement

Concept 2022 Q3 2022 Q2 2022 Q1
Revenue $0.00 $0.00 $0.00
YoY Change
Cost Of Revenue
YoY Change
Gross Profit
YoY Change
Gross Profit Margin
Selling, General & Admin $1.943M $2.363M $2.105M
YoY Change -27.24% 1618.24% 1594.15%
% of Gross Profit
Research & Development $1.610M $1.506M $1.297M
YoY Change 130.7% 285.09% 164.87%
% of Gross Profit
Depreciation & Amortization $390.00 $540.00 $530.00
YoY Change -11.36% 145.45% 152.38%
% of Gross Profit
Operating Expenses $3.553M $3.869M $3.402M
YoY Change 5.48% 631.92% 454.1%
Operating Profit -$3.553M -$3.869M -$3.402M
YoY Change 5.48% 631.92%
Interest Expense
YoY Change
% of Operating Profit
Other Income/Expense, Net $86.18K $33.76K $36.92K
YoY Change 10321.28% 156.4% 2281.94%
Pretax Income -$3.466M -$3.836M -$3.365M
YoY Change 2.95% 644.06% 449.48%
Income Tax
% Of Pretax Income
Net Earnings -$3.466M -$3.836M -$3.365M
YoY Change 2.95% 644.07% 449.48%
Net Earnings / Revenue
Basic Earnings Per Share -$0.42 -$0.46 -$0.41
Diluted Earnings Per Share -$419.7K -$464.4K -$407.5K
COMMON SHARES
Basic Shares Outstanding 8.259M shares 8.259M shares 8.259M shares
Diluted Shares Outstanding 8.259M shares 8.259M shares

Balance Sheet

Concept 2022 Q3 2022 Q2 2022 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $28.46M $33.01M $36.18M
YoY Change -32.01% 94.29% 256.96%
Cash & Equivalents $6.718M $14.26M $33.22M
Short-Term Investments $21.74M $18.75M $2.961M
Other Short-Term Assets $1.133M $260.9K $742.0K
YoY Change -43.26% -85.51% -63.34%
Inventory
Prepaid Expenses
Receivables
Other Receivables
Total Short-Term Assets $29.59M $33.27M $36.92M
YoY Change -32.52% 77.06% 203.64%
LONG-TERM ASSETS
Property, Plant & Equipment $2.340K $2.732K $150.4K
YoY Change -46.08% -90.32%
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets $754.7K $659.0K $16.48K
YoY Change -49.3% -99.56%
Total Long-Term Assets $859.3K $786.6K $166.8K
YoY Change 19700.05% -39.49% -96.83%
TOTAL ASSETS
Total Short-Term Assets $29.59M $33.27M $36.92M
Total Long-Term Assets $859.3K $786.6K $166.8K
Total Assets $30.45M $34.06M $37.09M
YoY Change -30.57% 69.52% 112.77%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $1.246M $2.433M $2.835M
YoY Change -78.44% 512.78% 1449.01%
Accrued Expenses $98.63K $97.91K $444.7K
YoY Change
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $2.881M $3.624M $3.680M
YoY Change -50.16% -33.38% -29.28%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00 $0.00
YoY Change
Other Long-Term Liabilities $4.950K $27.91K $50.52K
YoY Change -96.1% -94.28%
Total Long-Term Liabilities $4.949K $27.91K $50.52K
YoY Change -96.1% -94.28%
TOTAL LIABILITIES
Total Short-Term Liabilities $2.881M $3.624M $3.680M
Total Long-Term Liabilities $4.949K $27.91K $50.52K
Total Liabilities $2.886M $3.652M $3.730M
YoY Change -50.08% -40.68% -38.71%
SHAREHOLDERS EQUITY
Retained Earnings -$26.30M -$22.90M
YoY Change 111.17%
Common Stock $82.59K $82.59K
YoY Change -88.64%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $27.57M $30.41M $33.36M
YoY Change
Total Liabilities & Shareholders Equity $30.45M $34.06M $37.09M
YoY Change -30.57% 69.52% 112.77%

Cashflow Statement

Concept 2022 Q3 2022 Q2 2022 Q1
OPERATING ACTIVITIES
Net Income -$3.466M -$3.836M -$3.365M
YoY Change 2.95% 644.07% 449.48%
Depreciation, Depletion And Amortization $390.00 $540.00 $530.00
YoY Change -11.36% 145.45% 152.38%
Cash From Operating Activities -$4.602M -$3.148M -$3.118M
YoY Change -18.27% 143.15% 277.64%
INVESTING ACTIVITIES
Capital Expenditures $0.00 $0.00
YoY Change -100.0% -100.0%
Acquisitions
YoY Change
Other Investing Activities -$2.939M -$15.81M -$2.798M
YoY Change
Cash From Investing Activities -$2.939M -$15.81M -$2.798M
YoY Change 178024.85% 718505.91%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 0.000 0.000
YoY Change -100.0% -100.0%
NET CHANGE
Cash From Operating Activities -4.602M -3.148M -3.118M
Cash From Investing Activities -2.939M -15.81M -2.798M
Cash From Financing Activities 0.000 0.000
Net Change In Cash -7.541M -18.96M $0.00
YoY Change -120.44% -4065.5%
FREE CASH FLOW
Cash From Operating Activities -$4.602M -$3.148M -$3.118M
Capital Expenditures $0.00 $0.00
Free Cash Flow -$4.602M -$3.148M
YoY Change -18.25% 143.56%

Facts In Submission

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<p id="xdx_80E_eus-gaap--NatureOfOperations_zV6ccmWkWNhf" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTE 1: <span id="xdx_82D_zMndPvYR3x75">GENERAL</span></b></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">a.</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Indaptus Therapeutics, Inc. and its wholly-owned subsidiaries, Decoy Biosystems, Inc. and Intec Pharma Ltd., collectively (the “Company”), is a biotechnology company dedicated to enhancing and expanding curative cancer immunotherapy for patients with unresectable or metastatic solid tumors and lymphomas, which are responsible for more than 90% of all cancer deaths. The Company is developing a novel, multi-targeted product that activates both innate and adaptive anti-tumor and anti-viral immune responses.</span></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: -0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Indaptus Therapeutics, Inc. (“Indaptus”), formerly “Intec Parent Inc.”, was established and incorporated in Delaware on February 24, 2021, as a private Delaware corporation and wholly-owned subsidiary of Intec Pharma Ltd., (“Intec Israel”), a former publicly traded company.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">b.</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On August 3, 2021, Indaptus completed its merger with Decoy Biosystems, Inc., (“Decoy”), following the satisfaction or waiver of the conditions set forth in the Agreement and Plan of Merger (the “Merger Agreement”), dated as of March 15, 2021 among Indaptus, Decoy, Intec Israel, Domestication Merger Sub Ltd., an Israeli company and a wholly-owned subsidiary of Indaptus (“Domestication Merger Sub”), and Dillon Merger Subsidiary Inc., a Delaware corporation and wholly-owned subsidiary of Indaptus (“the Merger Sub”), pursuant to which Merger Sub merged with and into Decoy, with Decoy surviving as a wholly-owned subsidiary of Indaptus (the “Merger”) and the business conducted by Decoy became the business conducted by Indaptus. Previously, on July 26, 2021, Intec Israel implemented a <span id="xdx_90C_eus-gaap--StockholdersEquityReverseStockSplit_c20210725__20210726__us-gaap--SubsidiarySaleOfStockAxis__custom--ShareholdersEquityPostReverseShareSplitMember_zzHRv3t3QHqf" title="Intec Israel, Reverse Share Split Conversion Ratio">1-for-4</span> reverse share split of its outstanding ordinary shares, options and warrants and proportionate adjustments were made to its exercise prices. In addition, on July 27, 2021, Intec Israel, Indaptus and the Domestication Merger Sub, completed the domestication merger pursuant to the terms and conditions of the Agreement and Plan of Merger and Reorganization, dated April 27, 2021, whereby Domestication Merger Sub merged with and into Intec Israel, with Intec Israel being the surviving entity and a wholly-owned subsidiary of Indaptus.</span></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: -0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Also, in connection with the Merger, Indaptus changed its name from “Intec Parent, Inc.” to “Indaptus Therapeutics, Inc.”. Following completion of the Merger, shares of Indaptus common stock commenced trading at market open on August 4, 2021, on the Nasdaq Capital Market under the name “Indaptus Therapeutics, Inc.” and under the symbol “INDP”.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%"> <tr style="font: 10pt Times New Roman, Times, Serif; vertical-align: top"> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></td> <td style="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">c.</span></td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In connection with the Merger, on July 23, 2021, Indaptus entered into a securities purchase agreement (the “Purchase Agreement”) with a certain institutional investor, pursuant to which Indaptus agreed to sell and issue, in a private placement (the “Private Placement”), pre-funded warrants and warrants for total net proceeds of approximately $<span id="xdx_905_ecustom--ProceedsFromIssuanceOfPreFundedWarrantsGross_pn5n6_c20210722__20210723__us-gaap--TypeOfArrangementAxis__custom--PurchaseAgreementsMember__us-gaap--SubsidiarySaleOfStockAxis__us-gaap--PrivatePlacementMember__dei--LegalEntityAxis__custom--IndaptusMember_zy9F13vsn0Xd" title="Total net proceeds from issuance of pre-funded warrants and warrants to purchase Indaptus common stock">27.3</span> million, after deducting the placement agent’s fees and other estimated offering expenses payable by Indaptus in the amount of approximately $<span id="xdx_90B_ecustom--IssuanceExpenses_pn5n6_c20210722__20210723__us-gaap--TypeOfArrangementAxis__custom--PurchaseAgreementsMember__us-gaap--SubsidiarySaleOfStockAxis__us-gaap--PrivatePlacementMember__dei--LegalEntityAxis__custom--IndaptusMember_z7bVMSeV6T98" title="Issuance expenses">2.7 </span>million. In September 2021, the pre-funded warrant was fully exercised. Each warrant is exercisable at an exercise price of $<span id="xdx_908_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_c20210723__us-gaap--TypeOfArrangementAxis__custom--PurchaseAgreementsMember__us-gaap--SubsidiarySaleOfStockAxis__us-gaap--PrivatePlacementMember__dei--LegalEntityAxis__custom--IndaptusMember_zVkWclVHL3U1" title="Warrant is exercisable price">11.00</span> per share and has a term of five and one-half years from the date of issuance. In addition, in connection with the Private Placement, Indaptus issued to the placement agent a warrant to purchase <span id="xdx_90F_ecustom--NumberOfWarrantsIssuedToPlacementAgent_iI_c20210723__us-gaap--TypeOfArrangementAxis__custom--PurchaseAgreementsMember__us-gaap--SubsidiarySaleOfStockAxis__us-gaap--PrivatePlacementMember__dei--LegalEntityAxis__custom--IndaptusMember_z4kgtCQh8tRd" title="Number of warrants issued to the placement agent">136,364</span> shares of Indaptus’ common stock at an exercise price of $<span id="xdx_908_ecustom--ExercisePriceOfWarrantIssuedToPlacementAgent_iI_c20210723__us-gaap--TypeOfArrangementAxis__custom--PurchaseAgreementsMember__us-gaap--SubsidiarySaleOfStockAxis__us-gaap--PrivatePlacementMember__dei--LegalEntityAxis__custom--IndaptusMember_zIMXdSxOJOga" title="Exercise price of warrant issued to the placement agent">13.75</span>.</span></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Risks and uncertainties</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company is subject to a number of risks similar to those of other companies of similar size in its industry, including, but not limited to, the need for successful development of products, the need for additional capital (or financing) to fund operating losses (see below), competition from substitute products and services from larger companies, protection of proprietary technology, patent litigation, and dependence on key individuals.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The COVID-19 pandemic has resulted in significant financial market volatility and uncertainty in the past year. The COVID-19 pandemic is affecting the United States and global economies and may affect the Company’s operations and those of third parties on which the Company relies, including by causing disruptions in the supply of its product candidates and the conduct of future clinical trials. For example, the pandemic has caused our good manufacturing practice (“GMP”) process to take longer than expected. In addition, the COVID-19 pandemic may affect the operations of the FDA and other health authorities, which could result in delays of reviews and approvals, including with respect to the Company’s product candidates. Additionally, while the potential economic impact brought by, and the duration of, the COVID-19 pandemic is difficult to assess or predict, the impact of the COVID-19 pandemic on the global financial markets may reduce the Company’s ability to access capital, which could negatively impact its short-term and long-term liquidity. The ultimate impact of the COVID-19 pandemic is highly uncertain and subject to change. While it is unknown how long these conditions will last and what the complete financial effect will be to the Company, capital raise efforts and additional development of the Company’s technologies may be negatively affected.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Going concern and management’s plans</i></span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Company has incurred net losses and utilized cash in operations since inception, has an accumulated deficit as of June 30, 2022 of $<span id="xdx_907_eus-gaap--RetainedEarningsAccumulatedDeficit_iNI_pn5n6_di_c20220630_zfzoQcMtbEsd" title="Accumulated deficit">22.9</span> million, and expects to incur future additional losses as clinical testing and commercialization of the Company’s product candidates will require significant additional financing. The Company believes it has adequate cash to fund its operations for at least one year after the date of issuance of these unaudited condensed consolidated financial statements.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Management plans to raise additional capital through equity and/or debt financings, or other capital sources, including potential collaborations, licenses, and other similar arrangements. However, these plans are not entirely within its control and cannot be assessed as being probable of occurring. The Company’s ability to raise additional capital may be adversely impacted by potential worsening of global economic conditions and the recent disruptions to, and volatility in, financial markets in the United States and worldwide resulting from the developing conflict between Russia and Ukraine and the ongoing COVID-19 pandemic. If the Company is unable to raise capital when needed or on attractive terms, it would be forced to delay, reduce, or eliminate its research and development programs or other operations. If any of these events occur, the Company’s ability to achieve the development and commercialization goals would be adversely affected.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">These unaudited condensed consolidated financial statements have been prepared assuming that the Company will continue as a going concern and do not include any adjustments that might result from the outcome of this uncertainty.</span></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"> </span></p>
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Files In Submission

Name View Source Status
form10-q_htm.xml Edgar Link completed
indp-20220630_lab.xml Edgar Link unprocessable
FilingSummary.xml Edgar Link unprocessable
indp-20220630_pre.xml Edgar Link unprocessable
indp-20220630_def.xml Edgar Link unprocessable
indp-20220630_cal.xml Edgar Link unprocessable
0001493152-22-021562-index-headers.html Edgar Link pending
0001493152-22-021562-index.html Edgar Link pending
0001493152-22-021562.txt Edgar Link pending
0001493152-22-021562-xbrl.zip Edgar Link pending
ex31-1.htm Edgar Link pending
ex31-2.htm Edgar Link pending
ex32-1.htm Edgar Link pending
ex32-2.htm Edgar Link pending
Financial_Report.xlsx Edgar Link pending
form10-q.htm Edgar Link pending
indp-20220630.xsd Edgar Link pending
MetaLinks.json Edgar Link pending
R1.htm Edgar Link pending
R10.htm Edgar Link pending
R11.htm Edgar Link pending
R12.htm Edgar Link pending
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R4.htm Edgar Link pending
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R9.htm Edgar Link pending
report.css Edgar Link pending
Show.js Edgar Link pending